If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

Every year at tax time, many Americans look for help with tax resolution issues. Others are busy trying to decide what to do with their tax refund checks from the IRS. If your withholding rate is set too high, you will indeed receive a refund. It is possible to set the rate at a proper level in order to receive no refund whatsoever. Many Certified Public Accountants recommend this method. That way, you will not forgo the interest on the money. Others say, more realistically, that unless you get extremely large refunds, there is no reason to adjust your withholding amount. Just take the refund, they say, and look at it as a coerced savings system. The practical challenge comes when people try to decide what to do with the money, which comes to $3000 for the average taxpayer.

What should you do with the money? Ask ten financial advisers and you will get ten different answers, though there are some patterns that stand out in the mix. First, you need to look at your particular situation. Do you carry a lot of debt? Do you have savings, emergency money, or a rainy day account? How old are you, and how many years of work are left before you retire? Are there some emergency expenses that need to be met right away? Have you gone too long without a vacation? Sit down with a pencil and paper. Answer each of these questions and you will be well on your way to making a wise decision when it comes to using your tax refund money.

Money experts say that you should pay off credit card bills first, in most cases. Unless there is some dire emergency that just came up, get rid of the high interest on that unsecured debt. Second, make sure that in the case of a financial emergency, you have an account that would cover about half of one year’s living expenses. This is an old rule of thumb that has withstood the test of time. It makes sense because it works.

After taking care of the debt and the emergency fund, it is pretty much a judgment call at this point, depending what your particular needs are. Maybe you want to make a few mortgage payments ahead of time, or take a needed vacation. Interestingly, many people choose to get elective dental work with the funds.

The biggest mistake people make is to do nothing, to have no plan, to not even think about their tax refund until the day it arrives. This is asking for trouble. All the top advisers say that you should make a written, detailed listing of where each dollar will go. This way, a tiny bit of work on your part today will make the future much brighter.

Experiencing tax problems with the IRS? Contact Guardian Tax Resolutions. The Guardian will help you resolve your tax issues with the IRS.

When you go to purchase a large item and you want to use credit, the bank or lender will pull your credit score as they want to know how high of a risk should they take by loaning you money. Your credit report can also be viewed by you if you so request from the credit bureaus.

It’s not uncommon that your credit report will be pulled for further verification that such bills will eventually be paid. If you have a very low score your time for bills to be paid might be shortened then sent off to collections, especially if there are large delays between payments. If you are not sure about your credit score you can always ask for a copy of your report is sent to you from the credit bureau.

Your creditors may also have only reported on one or two payments when in fact the item you purchased is paid off. Get your report, make a copy, and get a pencil handy to mark up your report as you call the different vendors you find have made inaccurate claims. After you have looked over your report and make the correct changes with the proper documentation backing your claim, you can send this information to the different credit bureaus with a letter.

While you are working out the details of how and when to pay your medical bills DO NOT STOP PAYING on your current bill, this will only hurt your chances of getting further assistance will your medical bills. Remember you are trying to keep your credit report in good shape, with high marks, so lenders or the medical facility you are working with will continue counseling with you until you can regain control of paying of such medical bills.

Do not be surprised if the first thing a credit counselor does is cut up all your credit cards, or a least all but one or two. The temptation to spend must be crushed and goals to getting back on track will be the front runner to getting your credit scores back on track.

Learn more about Social Service Coordinators, and start getting your health bills paid today!